RICHFIELD, Minn. (AP) — Best Buy is eliminating 400 jobs at its headquarters in Richfield.

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The electronics retailer says it notified employees Tuesday of the job cuts as part of its plan to eliminate about $150 million in administrative expenses.

At an investors meeting last November, Best Buy CEO Hubert Joly promised to remove $725 million in annual costs in order to compete in today's market. The St. Paul Pioneer Press reports the layoffs represent the first phase of its cost-saving initiatives, with additional reductions to come throughout the year.

Best Buy employs 8,000 in Minnesota, but has not disclosed how many workers are at its headquarters.